Daily Pivots: (S1) 0.8852; (P) 0.8884; (R1) 0.8924; More…
The break of 0.8901 suggests that rise from 0.8620 has resumed again. Intraday bias is back on the upside for 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). While upside momentum has been unconvincing, there is no sign of topping before a break of 0.8815. So, outlook remains cautiously bullish as long as 0.8815 holds, in case of retreat.
In the bigger picture, EUR/GBP is staying in long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance from 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
